Multifonds is expanding its core transfer agency (TA) solution, Multifonds Global Investor (MFGI), to meet the needs of its asset servicing clients as they seek to consolidate and rationalise their TA processing systems.
Since the launch in 2012, the MFGI client base has grown by more than 80 per and assets on the platform have increased by 50 per cent. MFGI now supports more than USD1.8 trillion in assets across 20+ global fund domiciles; specifically MFGI has more than 20 per cent market share in Luxembourg and Ireland.
With the regulatory change agenda putting pressure on margins, service providers are having to look internally at ways to reduce costs and maximise efficiency; simplifying their technology architecture and consolidating operating models and systems (often as a result of mergers and acquisitions) is increasingly seen as the way to achieve this. In response, Multifonds has expanded its robust core TA system, removing the need for multiple ancillary third party systems, such as for trailer fees and payments.
Keith Hale (pictured), Executive Vice President, Client and Business Development, says: “Reducing operational costs is a big challenge for our clients and our ongoing investment and expansion of the product is all about helping them achieve this efficiently. By meeting more of their TA servicing requirements from one fully integrated platform, they can reduce the number of external systems they have to maintain and their overall total cost of ownership.”
Multifonds engages with the market and its client user group to assess the impact of regulatory change, most recently engaging KMPG Luxembourg to advise on the upcoming implications for TA clients of the professional secrecy and data protection regulations.
Michael Hoffman, Partner, Head of Information Risk Management, KPMG, says: “We were delighted to be engaged by Multifonds; we already share several clients and are well positioned to advise Multifonds on the data secrecy obligations and common industry practices and models for complying with the regulatory directives.”
Multifonds’ key strategic clients have welcomed the extensions and 40% have already committed to using the extensions which include:
Retrocessions – replacing the need for a separate trailer fee system, MFGI provides a fully comprehensive trailer fee engine for the calculation of commission fees and rebates to the agent and investors.
Workflow and exception management (WEM) – in response to the need for increased efficiency, MFGI deploys the workflow management tool, WEM to proactively monitor and control every stage of the TA workflow.
Cash management – replacing the need for a separate payments system, MGFI delivers a payment processing module to control inbound and outbound invoicing and payment processing for cash payments and receipts.
Data segregation – for professional secrecy and investor consent, MFGI supports data segregation to investor level for regulatory compliance around data storage and client permissions allowing clients to operate a follow the sun global operating model across locations.
Integration – to realise the benefits from a single integrated platform, MFGI extends its integration capabilities, including an off-the-shelf interface/adapter to NSCC for 60+ message types.
